WAEC Economics 2020 Paper

Concept:Average fixed cost ($AFC$) is the total fixed cost spread over each unit of output.Explanation:$AFC = \frac{TFC}{Q}$, where $TFC$ is constant and $Q$ is output.As $Q$ increases, $AFC$ keeps falling continuously.It approaches zero when output is very large, but it never actually becomes zero.Since total fixed cost is always positive, $AFC$ also remains positive and never becomes negative.Answer:A. falls continuously but is never equal to zero.